This document provides an overview of EXFO, a company that provides testing and service assurance solutions for telecommunications network operators. It summarizes EXFO's business, financial performance, growth strategy, markets, and competitive positioning. Key points include that EXFO is the number 2 supplier in portable telecom testing, has gained market share for 28 years, and its goal is to increase its presence in wireless markets, expand business with Tier 1 operators, and accelerate profitability through execution of its growth strategy.

1. Stifel Technology, Internet & Media Conf.
Germain Lamonde
Chairman, President & CEO
February 12, 2014

2. Forward-Looking Statements
Certain statements in this presentation, or given in response to your questions, may constitute
forward-looking statements within the meaning of the Securities Act of 1934. The Private
Securities Litigation Reform Act of 1995 provides “safe-harbors” for such forward-looking
statements and we intend that any forward-looking statements made today be subject to the
safe harbors. We caution you that any forward-looking statements are just predictions. They
are not guarantees of future performance and involve risks and uncertainties. Actual results
may differ materially from those projected in forward-looking statements and we invite you to
review the company’s most recent filings with the Securities and Exchange Commission or
Canadian securities commissions for a discussion of the factors at risk. These forward-looking
statements speak only as of the date of this presentation and, unless required by law or
applicable regulations, we will not be reviewing or updating the material that is contained
herein.
Annual financial data in this presentation is prepared in accordance with international financial
reporting standards (IFRS) and Canadian generally accepted accounting principles (GAAP).
Quarterly financial data is prepared in accordance with IFRS. For a reconciliation of adjusted
EBITDA to net earnings (loss), refer to the Q1 2014 press release or the “Non-IFRS Measures”
section on EXFO’s website.
© 2014 EXFO Inc. All rights reserved.
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3. EXFO at a Glance
Who We Are
What We’ve Done
Where We’re Going
› No.2 supplier in portable
telecom testing and innovation
leader in IP service assurance
› Gained market share year-in
and year-out for past 28 years
› Increase wireless presence
› Enabling network operators
and equipment manufacturers
to design, deploy and monitor
IP fixed and mobile networks
› Ten-year sales CAGR of 17.4%
› Difficult markets in FY 2012-13
› Sales down 3% in FY’13
› Cost savings of $9 M in FY’13
› Adjusted EBITDA1 margin flat
year-over-year at 7.2%
EBITDA represents net earnings before interest, income taxes, depreciation and amortization, restructuring charges, stock-based compensation
costs and foreign exchange gain.
› Enable network operators to
reduce operating expenses
› Expand share of wallet with
Tier-1 operators
› Accelerate profitability through
execution
1Adjusted
© 2014 EXFO Inc. All rights reserved.
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4. Global Organization
› No. 1 in portable optical testing
› ~1600 employees in 25 countries
Americas
› FY 2013 Sales: $128.1 M
› Growth YoY: -2.3%
› Sales Split: 53%
EMEA
› FY 2013 Sales: $67.0 M
› Growth YoY: -6.0%
› Sales Split: 28%
Asia-Pacific
› FY 2013 Sales: $47.0 M
› Growth YoY: -1.0%
› Sales Split: 19%
© 2014 EXFO Inc. All rights reserved.
reserved..
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5. Bandwidth Demand
Global IP traffic
Up 3X from 2012-2017
Mobile IP traffic
Up 13X from 2012-2017
(Cisco)
STRONG FUNDAMENTAL DRIVERS,
MARKED BY INCREASED MOBILE TRAFFIC AND VIDEO
© 2014 EXFO Inc. All rights reserved.
© 2014 EXFO Inc. All rights reserved.
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6. Headwinds & Tailwinds
Headwinds
›Uncertain economic conditions
›Challenging end-markets
›Some carrier investments in 2013
were delayed (especially in the
Americas)
Tailwinds
›3G, 4G/LTE deployments
›Small cells and network density
initiatives (DAS, RRH)
›Mobile backhaul upgrades
›100G network rollouts
›Pair bonding and vectoring on
copper links (100 Mbit/s)
© 2014 EXFO Inc. All rights reserved.
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7. Growth Strategy
Increase Wireless
Presence
Enable Operators
to Reduce OPEX
Expand Share of
Wallet with Tier-1
Operators
Accelerate
Profitability
Sales to wireless
customers on the rise
(~28% of sales in FY’13)
Key productivity
differentiator:
EXFO Connect
Doing business
with ~80 of top-100
operators worldwide
Combining revenue
growth with a tight
control on expenses
STAY THE COURSE AND EXECUTE FLAWLESSLY
© 2014 EXFO Inc. All rights reserved.
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8. (Optical & Access)
PHYSICAL
PROTOCOL
(Wireless, Serv. Assurance,
Transport & Datacom)
Telecom Market
TAM*
$820 M
$3.8 B
SAM*
$685 M
$1.8 B
0-5%
10-15%
$140.9 M
$100.8 M
Sales growth ― FY ’13/’12
4.3%
-11.3%
Five-year sales CAGR
2.7%
24.5%
Gross margin profile
55-60%
70-75%
JDSU, Anritsu
JDSU, IXIA, Tektronix
Annual growth rate
Sales ― FY 2013
Major competitors
*Total available market (TAM) and serviceable available market (SAM) were raised in 2013 due to more accurate market intelligence, not necessarily because these markets increased in size.
PROTOCOL TO DRIVE REVENUE & EARNINGS GROWTH
© 2014 EXFO Inc. All rights reserved.
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9. Financial Snapshot
Revenue
› $242.2 M in FY’13
› Challenging end-markets
in FY’12-13
› FY’14: Targeting growth
$300
70%
60%
$250
Gross Margin
50%
Sales CAGR of 17.4%
over last 10 Years
$200
› 61.8% in FY’13
› Up 8X in last 10 years
› FY’14-15: Expected to rise
40%
30%
$150
Adjusted EBITDA Margin
In US$ Millions
$100
10%
36%
$50
2004
34%
21%
24%
-6%
32%
33%
-7%
-3%
2005
2006
2007
2008
2009
2010
2011
2012
Percentage of Sales
20%
› 7.2% in FY’13 (flat YoY)
› Cost savings of $9 M YoY
› Targeting 15%
2013
Revenue
Gross Margin
Adjusted EBITDA Margin
0%
© 2014 EXFO Inc. All rights reserved.
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10. Strong Value Proposition
Why Invest?
1. Proven track record of sales growth
Sales CAGR of 17.4% in last 10 years
2. Well positioned for key growth drivers
3G, 4G/LTE, wireless backhaul, small cells, DAS, RRH, FTTx, 100G
3.
Balancing sales growth and profitability
4.
Solid balance sheet
5.
Experienced and disciplined management team
1
Targeting adjusted EBITDA margin of 15% for medium term
Cash position of $52.6 M and no debt — as at November 30, 2013
Deep knowledge of managing business in growth and downward markets
1Adjusted
EBITDA represents net earnings before interest, income taxes, depreciation and amortization, stock-based compensation costs and foreign exchange gain or loss.
© 2014 EXFO Inc. All rights reserved.
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